Protecting Sales and Shopper Loyalty by Managing Out-of-Stock

Protecting Sales and Shopper Loyalty by Managing Out-of-Stock

Seventy percent of purchase decisions are made in front of the shelf, so if your product is out of stock, you’re out of luck.

And with an average 8% out of stock rate in Europe*, this means you’re at risk of losing that hard-earned shopper loyalty when shelves aren’t properly stocked.

In fact, Nielsen research shows that 37% of consumers purchase another brand when their favorite brand is out of stock, while 21% visit another store.

The drinks category is a prime example of a category with the significant availability issues, with out-of-stock rates for water reported as high as 12.1% for some retailers. Which means 12% of your shoppers have either not spent with you, purchased somewhere else, or purchased a competing brand.

TIPS FOR SUCCESS

Solving the out-of-stock problem is a relatively easy fix. To ensure you’re ready for the end-of-year sales peak period, Nielsen advises the following:

Manage your out-of-stock and distribution issues quickly and efficiently. When not addressed properly, these factors can be the main blockers to success.

Protect lost sales and customers through good measurement.

Be excellent in your store execution so that shoppers find what they need. If they don’t find it fast, they’ll go elsewhere.

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